SCIO briefing on promoting high-quality development during 15th Five-Year Plan period

Bloomberg:

In the 15th Five-Year Plan, there was a mention of a 10-year action plan for doubling non-fossil energy. I was wondering if you could elaborate on that? Does the doubling refer to capacity or consumption? What is the base and target year for the 10 years? Is it 2025 to 2035?

Wang Changlin:

Thank you for your questions. Let me briefly respond to them. The 10-year action plan for doubling non-fossil energy that you mentioned is an important means for us to build a new energy system. In response to your questions, I would like to provide a systematic overview of the relevant situation. Compared to the traditional energy system, the new energy system is a clean, low-carbon, safe and efficient energy system with non-fossil energy as the main source of supply, fossil energy as a safety net, new power systems as key support, and green, intelligent and conservation-oriented energy use as the guiding principle. It is the only way for us to achieve a green and low-carbon energy transformation, and also a strategic choice to ensure energy security and gain the upper hand in major-country competition. By the end of the 14th Five-Year Plan period, we have initially established the basic framework of a new energy system, with total energy production exceeding 5 billion metric tons of standard coal and annual electricity consumption exceeding 10 trillion kilowatt-hours. We have built the world's largest clean and low-carbon energy system, with non-fossil energy consumption accounting for 21.7%, providing energy support characterized by "sufficient quantity, high quality and stable price" for socialist modernization. As we have recently seen, in response to the impact of changes in the international situation on China's oil and gas imports, China has taken comprehensive measures to effectively ensure sufficient domestic oil supply and stable market operation, fully demonstrating China's achievements in building a new energy system.

During the 15th Five-Year Plan period, we will follow the decisions and plans of the CPC Central Committee and the State Council, coordinate development and security, coordinate supporting economic and social development and achieving carbon peaking goals, and accelerate the construction of a new type of energy system.

First, we will accelerate the high-quality development of non-fossil energy. We will coordinate the development of centralized and distributed clean energy, and promote with high quality the construction of major projects such as the hydropower project in the lower reaches of the Yarlung Zangbo River and new energy bases in desert, Gobi and barren areas. We will coordinate the development and absorption of new energy, optimize and adjust resource allocation, enhance the grid's capacity to accommodate, allocate and regulate new energy, strive to increase the production and consumption of non-fossil energy power, and actively promote the non-electrical utilization of non-fossil energy. Through these efforts, it is projected that by 2030, the supply of non-fossil energy will increase significantly compared to 2025, and by 2035 it will have doubled compared to 2025. Second, we will promote the safe, reliable and orderly replacement of fossil fuels. We will expand domestic energy production, improve energy reserve capacity for oil, natural gas and other energy sources, and continuously strengthen the fundamental role of traditional energy in ensuring supply security. We will continue to promote the substitution of electricity in key sectors such as transportation, industry and construction, accelerate the promotion and application of new energy heavy-duty trucks, and push for the peaking of oil and coal consumption. Third, we will vigorously promote innovation in energy technology. We will promote the iterative upgrading of new energy power generation technologies, accelerate the research and application of technologies such as next-generation coal power and flexible DC power transmission, carry out major technological R&D breakthroughs in areas such as long-duration energy storage, green electricity to produce hydrogen, ammonia and alcohol, and controlled nuclear fusion, and promote the deep integration of energy technology innovation and industrial innovation. Fourth, we will continue to deepen the reform of the energy system and mechanism. We will improve the mechanism for promoting green energy consumption. We will optimize the investment mechanism for energy projects and guide enterprises under all forms of ownership, especially private enterprises, to participate in the construction of major projects. We will effectively utilize policies including the integration of new energy into the market and direct green power connection. Fifth, we will steadily expand high-level international cooperation in energy. We will actively participate in global climate governance, promote international mutual recognition of standards for green certificates and green electricity, and encourage enterprises to engage in international energy cooperation. Energy imports will be further diversified.

Meanwhile, we will prepare for worst-case and extreme scenarios, step up efforts to boost domestic production and supply capacity, increase energy reserves and enhance our ability to respond to emergencies, better safeguarding national energy security. Thank you.